Stock Market & Financial Investment News

Fox withdraws proposal to acquire Time Warner21st Century Fox (FOXA, FOX) announced that it has withdrawn its proposal to acquire Time Warner (TWX). Chairman and CEO Rupert Murdoch commented: "We viewed a combination with Time Warner as a unique opportunity to bring together two great companies, each with celebrated content and brands. Our proposal had significant strategic merit and compelling financial rationale and our approach had always been friendly. However, Time Warner management and its Board refused to engage with us to explore an offer which was highly compelling. Additionally, the reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders. These factors, coupled with our commitment to be both disciplined in our approach to the combination and focused on delivering value for the Fox shareholders, has led us to withdraw our offer."

Analysts clash on DreamWorks following Q4 missThe shares of animated film and television show maker DreamWorks (DWA) are rising, despite the weaker than expected results reported by the company last night. Two analysts offered very different views on the company's outlook following its results. BACKGROUND: DreamWorks last night reported a fourth quarter per share loss of ($3.08), versus analysts' consensus outlook for a ($3.01) per share loss. The company's revenue also came in below expectations. Excluding $210M in pre-tax charges associated with DreamWorks' restructuring plan, its loss was (75c) per share, the company stated. BEARISH TAKE: In a note to investors today, FBR Capital analyst Barton Crockett wrote that DreamWorks' results were "ugly," as they included $155M of write-offs on films and TV shows. However, Crockett believes that the crucial factor for the company's outlook is whether it can consistently compete with the entertainment giants, including Disney (DIS), Viacom (VIA), and Time Warner (TWX). Crockett is not convinced that DreamWorks will be able to hold its own, and he believes that its 2015 results could come in below expectations. The analyst warned that the company may have difficulty meeting its 2015 consumer products revenue guidance. DreamWorks expects its consumer products revenue to double this year, but the movie-based toy space is "very competitive" in 2015, as toys based on multiple popular children's films are set to be released, Crockett stated. Moreover, after conducting checks online, Crockett reports that there does not seem to be a great deal of interest in DreamWorks' movie "Home," which is set to be released on March 27. He kept an Underperform rating on the shares and raised his price target on the stock to $14 from $12. BULLISH TAKE: DreamWorks' results were mixed, but the results are not very important, Piper Jaffray analyst James Marsh stated. The company's guidance for its TV and consumer products businesses were solid, the analyst believes. Moreover, the company "took specific and decisive action" to avert a liquidity crunch, Marsh wrote. Specifically, DreamWorks raised $185M of capital by selling its real estate in Glendale, California and then leasing it back, and increased the size of its current credit facility to $450M from $400M, Marsh reported. The moves should "largely" eliminate investors' worries about the company's liquidity position, Marsh stated. He kept a $26 price target and Overweight rating on the stock. WHAT'S NOTABLE: On DreamWorks' earnings conference call last night, the company's CEO Jeffrey Katzenberg stated that it did not obtain more than 10% of its revenue from Netflix (NFLX) last year. However, in an SEC filing earlier this morning, DreamWorks clarified that it had obtained 14.9% of its revenue from Netflix last year. PRICE ACTION: In late morning trading, DreamWorks rose 5.6% to $22.31.

Fox News' O'Reilly mounts defense of disputed statements, NY Times reportsBill O'Reilly, the host of a popular prime time show on 21st Century Fox's Fox News, yesterday defended himself against accusations that he had falsely claimed to have reported on the Falklands war and to have covered "active war zones," according to The New York Times. O'Reilly, who says he covered violent demonstrations in the aftermath of the war, last night played footage of violent protests in Argentina following the conflict and spoke with a former NBC News bureau chief who said there were tanks in the streets of Buenos Aires when OReilly was there, the newspaper stated. The website Mother Jones and a number of O'Reilly's former CBS colleagues have disputed his accounts, The times reported. Reference Link

21st Century Fox, Discovery held preliminary merger talks, AFR reports21st Century Fox (FOXA) executives met with their counterparts at Discovery Communications (DISCA) nearly two weeks ago to discuss a possible takeover offer, The Australian Financial Review reports, citing sources. According to the sources, discussions were "nascent" and talks are in the "very, very early days." A spokesperson for 21st Century Fox has denied talks took place. Reference Link